Nat. Gas: Sell, Sell, Sell Call Options :)
While it is possible that natural gas could see some seasonal price strength over the next 4-6 weeks, we would view all such rallies as Call Selling opportunities. Technically, natural gas is due for a bounce on short term charts. But don't be fooled. The longer term fundamentals for natural gas remain decidedly bearish. With a massive supply overhang that could grow as the year progresses, any rallies in natural gas should be limited in nature.
We would recommend you target call premium at or above the 4.25 strike price level on any February rallies. July and August contracts figure favorably. We'll be doing so with private client group members this month as part of a 6 market premium collection spread. Feel free to call if you would like to be included.
Note: The opinions presented here are that of Liberty Trading and not necessarily shared by Optionetics and/or its instructors.
James Cordier & Michael Gross
Contributing Writers, Liberty Trading Group/Optionsellers.com
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